annabis-based products business Love Hemp has been slapped with a £100,000 fine and de-listed from alternative market Aquis Stock Exchange (AQSE) due to a fundraising issue.
The company backed by two-time world heavyweight champion boxer Anthony Joshua specialises in cannabis oil (CBD) and other hemp products, including edibles and capsules, and has now agreed to pay a reduced fee of £70,000 after falling foul of an AQSE investigation.
Love Hemp said it had completed a £2 million funding round despite certain participants in the fundraise delaying the settlement terms with the full amount of the proceeds of the funding drive unavailable to the company for “20 days following the announcement”.
According to AQSE, the firm then failed to update the market on the investor’s failure to make payment on the due date. It has now appointed a new corporate advisor due to the error.
AQSE said: “The directors of the company maintain that during the period they had no reason to believe that settlement would not be forthcoming on the due date due to the previous performance of the investor in question. However, one investor for £1.2 million did not remit the funds as contracted.”
Graham Mullis, chairman of Love Hemp, said: “I am pleased the company has been able to resolve the situation with AQSE and looks forward to appointing a new corporate advisor and lifting the trading suspension shortly.
“The company has strengthened its board, improved governance and controls and takes its responsibilities seriously as a publicly traded company. I would like to thank shareholders for their patience during this period and I very much look forward to communicating in due course the exciting plans the Company has for building shareholder value.”